Malaysia is globally recognised for its sophisticated and highly developed Islamic finance sector. The combination of robust regulatory Sharia and legal frameworks, with a deep primary and active secondary sukuk market has contributed to the country’s emergence as an Islamic finance hub for the region.

Malaysia has taken a number of significant steps to support sector growth in distinct areas. For example, the country has transformed itself into the world’s largest sukuk market, holding a market share of 46.6 per cent of total issuances in 2016. In terms of Islamic assets under management (AUM), as of 2015 Malaysia was second only to Saudi Arabia, accounting for 28 per cent of the global total. In the first half of 2016, and in regard to the insurance industry, the expanding subsector of family takaful made up almost two-thirds of the entire takaful segment and 30 per cent of the life insurance market in terms of new business premiums.